Question

XYZ Football Club is a small professional football team owned by Singh Corporation.
On the worksheet tab are the November 30, 2019, account balances of XYZ Football as of
November 30, 2019. The revenue and expense account balances represent the results
of transactions recorded during the first 11 months of 2018. XYZ currently has 7,000 shares of
stock.   All income tax effects are to be ignored for this project.
On November 30, 2019, XYZ Football ledger showed the following accounts: cash $238,000,
concessions inventory $10,200, supplies inventory $8,200, prepaid stadium rental $12,800,
equipment $250,000, accumulated depreciation - equipment $117,200, building $400,000,
accumulated depreciation - building $115,500, accounts payable $20,220, wages payable $0,
utilities payable $0, interest payable $0, unearned admission revenue $3,300, long-term notes
payable $43,000, common stock ($10 par value per share) $70,000,
Retained earnings at 1/1/19 $280,860, dividends $0, admission revenue $512,600, concessions
revenue $528,650, wages expense $430,200, stadium rental expense $187,000, concessions
expense $118,230, supplies expense $0, utilities expense $16,600, advertising expense $6,300,
maintenance expense $13,800, depreciation expense - equipment $0, depreciation
expense - building $0, interest expense $0.
Instructions:
1. Prepare the three basic financial statements; income statement, statement of retained earnings,
and balance sheet.
December Transactions
Dec.	5	Paid accounts payable of $4,950.
	6	Paid stadium rental of $8,500 in advance.
	6	Purchased supplies, $720, on account.
	7	Deposited $16,000 of admissions receipts.
	9	Unearned admissions revenue is for gift certificates purchased for admission into future
		shows. $480 more of these gift certificates were sold to a local restaurant business, for cash.
	10	Purchased $2,150 of concessions items on credit.
	12	Acquired additional equipment worth $34,000 by paying $500 cash and giving a long-term
		note payable for the balance.
	14	Paid wages of $14,200 for the period December 1 through 14.
	16	Paid for the supplies purchased on December 6.
	17	Purchased $1,800 of supplies on credit.
	19	Sold 600 shares of $10 par value common stock for $10 a share.
	21	Deposited $22,750 from concessions sales and $10,660 of admissions receipts.
	24	Paid $1,600 for repairs to roof for weather damage.
	25	Purchased $8,200 of concessions items on account.
	27	Paid for the supplies purchased on December 17.
	28	Paid wages of $17,720 for the period December 15 through 28.
	30	Paid $2,500 to the newspaper for advertisements that appeared in December.
	31	Deposited $23,000 for admissions receipts and $17,850 from concessions sales.
	31	Declared and paid the annual dividend, amounting to $7,600.

Answer 1

XYZ Football Club
Income Statement
for the period ended November 30, 2019
Revenues
Admission Revenue	$512,600
Concessions Revenue	$528,650
Total Revenues		$1,041,250
Expenses
Wages Expense	$430,200
Stadium Rental Expense	$187,000
Concessions Expense	$118,230
Supplies Expense	$0
Utilities Expense	$16,600
Advertising Expense	$6,300
Maintenance Expense	$13,800
Depreciation Expense - Equipment	$0
Depreciation Expense - Building	$0
Interest Expense	$0
Total Expenses		$772,130
Net Income		$269,120
XYZ Football Club
Statement of Retained Earnings
for the period ended November 30, 2019
Retained Earnings as at 1/1/19	$280,860
Add: Net Income	$269,120
Less: Dividend	$0
Retained Earnings as at 30/11/19	$549,980
XYZ Football Club
Balance Sheet
as at November 30, 2019
Assets
Current Assets
Cash	$238,000
Concessions Inventory	$10,200
Supplies Inventory	$8,200
Prepaid Stadium Rental	$12,800
Total Current Assets		$269,200
Non-Current Assets
Equipment	$250,000
Less: Accumulated Depreciation - Equipment	($117,200)
		$132,800
Building	$400,000
Less: Accumulated Depreciation - Building	($115,500)
		$284,500
Total Assets		$686,500
Liabilities and Stockholders' Equity
Liabilities
Current Liabilities
Accounts Payable	$20,220
Wages Payable	$0
Utilities Payable	$0
Interest Payable	$0
Unearned Admission Revenue	$3,300
		$23,520
Non-Current Liabilities
Long-term Notes Payable	$43,000
		$43,000
Stockholders' Equity
Common Stock	$70,000
Retained Earnings	$549,980
Total Stockholders' Equity		$619,980
Total Liabilities and Stockholders' Equity		$686,500